1-Page Ltd share price jumps on 9 new contracts

1-Page Ltd (ASX:1PG) signs contracts with 9 large enterprises

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published November 30, 2015 12:14 pm AEDT

The share price of 1-Page Ltd (ASX: 1PG) has gained 4% to $3.75, after the company announced that it had signed 9 annual contracts with a value between US$50,000 and US$300,000.

The 9 contracts are for the company's Sourcing Platform, which allows businesses to find new employees and the skills and experience they require. According to 1-Page, the company hand curates pools of talent from more than 1 billion human verified aggregated profiles that contain up-to-date information as well as detailed professional history.

The platform allows companies to stop sorting through multiple online profiles, allows them to find job candidates from within its employee's existing networks and saving them time and money.

1-Page has already signed up an impressive list of clients to its products, including Amazon, Sears, Starbucks, Accenture, Red Bull, Buzzfeed, and telco Orange.

At today's share price, 1PG boasts a market cap of over $387 million, despite revenues of just $158,900 in the six months to end of July 2015. Clearly investors are hoping that clients signing on to 1-Page's platforms will begin to generate significant revenues.

Indeed, the company itself says that each of the 9 enterprises that signed today's contracts is expected to quickly scale to an average revenue generating contract of more than US$300,000. Each of them has an average of in excess of 20,000 employees per company, suggesting there are plenty of opportunities to grow. Already, 1-Page says some clients' requirements are already starting to expand beyond the contracted minimums.

The key question is, are 1-Page's shares at $3.78 still a bargain, or are they set to fall? Given the released financial results so far, investors are taking a mighty leap of faith that 1-Page's platforms and products will be hugely successful. Not only that but shareholders are also expecting the company to generate significant revenues and profits at some stage down the track as a return on their investment.

Foolish takeaway

1-Page is highly speculative and risky, so investors might want to limit their holdings to a small percentage of their portfolio, if they invest at all. Conservative investors might want to give the company a miss until more solid results are on the board. With its disruptive nature and revolutionary approach, it's definitely one company I'm keeping an eye on.

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